Although this situation is causing be to barely break even, I am still living at no expense to myself.

I want to house hack my first (investment) property, but i found out that most of the 2-4 units  multifamilies a) need big renovations b) are in not the good neighborhoods c) dont need renovations, are in Okay areas but are too expensive. so i was doing some research and found out that it is possible to withdraw my 401k in order to have a larger downpayment (FHA) to purchase a good multifamily that doesnt need renovations.

If I own commercial RE I am thinking I need to lower the price to lure tenants right now (or sell it at bare bottom prices to the Chinese, Japanese, Saudi investors who are persistently calling)!!

I remember back in the late-90s when Internet stocks were soaring -- but companies that barely existed were getting billion-dollar valuations and IPO were jumping 1000% in a day.A couple years later, everyone was saying, "I'm not sure how it wasn't obvious to everyone that the market was broken and it all had to come crumbling down?"

Option A - The only detriments to this compared to B are 5% LTV difference, 0.5% origination fee, and a shorter fixed rate portion.I'd probably roll with the 7-year ARM with the local bank and build a killer business with them. 

Demolition entrance porch and bathroom ( including block supporting structure (steps will remain on (do not demo)) - replace with wood to support structure and if absolutely necessary use block if needed but minimize cost here as well.Construct gable roof structure to replace bathroom and porch to meet minimum size requirements for bathroom - adjust the entrance way to bathroom only to minimum requirementsRoof must be metalAll new electrical and plumbing beneath ( I have an electrician who I have contracted to do teh whole unit)Provide the bare minimum cost kitchen counter and cabinets including sink if needed.

Also, check out our youtube channel (BARE: Badass Real Estate), Dan recently did a video on house hacking.If you have any questions don't hesitate to reach out. 

It's come back up but after a couple tenants and a few learning experiences, operations are going well and the capital gains exemption window has expired, so I've left it as a rental even though it's sub-optimal as one (acreage doesn't bring money).Obviously, I've felt the pain and know there's risks.Compromises and optionsI suspect investing activity would require re-deploying of retirement capital as I'm basically barely paying expenses right now on $6k take-home.   

I allowed 6 weeks for my new construction duplex, and barely made it.

If at a bare minimum you could also look into getting into a house hack to get started also!